As mid and smallcap indices show signs of recovery, retail investors are wondering if it's the right time to dive in — or hold back. But should you be chasing index performance at all? Abhishek Basumallick, Co-Founder and Fund Manager at Shree Rama Managers PMS, shares why index-based investing may not be the smartest route in the current market cycle. He argues that true returns come from selective stock-picking and understanding the long-term growth of underlying businesses. With indices heavily weighted towards certain sectors like financials, a broader portfolio could underperform the benchmark. For retail investors, the key is clarity, patience, and a focus on absolute growth over 3–5 years, not short-term index movements.